Brazil is moving to tighten controls aimed at crypto fraud, including a new 24-hour waiting period for transfers from regulated services to self-custody wallets, according to a report originally published by The Block. The reported measure would add a delay before users can move digital assets into wallets they control directly.
Self-custody wallets allow holders to manage their own private keys rather than relying on an exchange or other intermediary. They are a central feature of crypto markets, but transfers to such wallets can be harder for platforms to reverse or recover after funds have been sent, including in cases involving fraud or scams.
A 24-hour wait would create an additional pause between a customer’s request and the completion of a transfer to a self-custody address. The approach is intended to strengthen fraud controls by giving users and service providers more time to identify suspicious activity before assets leave a regulated platform.
The reported change underscores the balance regulators face between consumer protection and access to self-custody. Brazil’s move would place greater emphasis on safeguards around transfers to privately controlled wallets while keeping self-custody as part of the country’s crypto ecosystem.
